Corey wants to reorganize the company. Currently there are HR units at each plant, fiscal units at each plant, and purchasing units at each plant. He feels that by bringing all of those key functions together in one location and deploying them to the plants only when needed, he will save money and also create consistency. Is Corey correct?
A) Yes, because the company will need fewer employees in these units, saving money and allowing for consistency in process.
B) Yes, because the company will be able to make decisions more quickly, since all the key players will be in one location.
C) No, because with fewer employees in these units, the work will take longer actually costing the company more.
D) No, because the employees will not feel that their needs are being met by the company.
E) No, because even though the company will be able to save on payroll the costs of travel will be increased.

Question

Quizplus · Accepted Answer

An advantage in using centralized authority is that there is less duplication of work because fewer employees perform the same task; rather, the task is often performed by a department of specialists. Another advantage of centralization is that procedures are uniform and thus easier to control; all purchasing, for example, may have to be put out to competitive bids.

Corey Wants to Reorganize the Company